Buying a home can be an exciting experience, but it’s also an important financial decision. There are many costs associated with purchasing a home in addition to the price of the home and a mortgage, and some buyers are not prepared for the full costs before they find their dream home and sign an offer. Even if you’re not planning to buy a home for another six months or a year, it’s a good idea to make yourself aware of the additional costs to make yourself more prepared.
The Real Estate Council of Ontario’s fall edition of Connect Magazine helps shed some light on a few of these additional financial realities, including closing costs and the after-closing expenses that some buyers don’t always consider. These extra costs often affect a buyer’s budget when searching for a home, so it’s important to know what they are at an early stage in the process.
Some of the costs that a buyer will incur will arise before the actual sale. These costs typically include a home inspection, which any buyer will want to ensure they pay for before signing a finalized offer. These pre-closing costs might seem unnecessary at first, but they can help a buyer save a lot of money in the long run.
A home inspection will provide you with an understanding of the home’s physical status and will identify any underlying problems with the electrical, heating, or plumbing systems in the house. When you hire a qualified home inspector, you will not only receive peace of mind prior to making your purchase, but you will also have a much better idea about what future expenses might be associated with a particular home. Many buyers insert a clause in their agreement stating that they will only buy the home if they are satisfied with the inspection report. This way, after the inspection is complete, you can choose not to buy the home if you think the overall costs will be too high for your budget.
For further information please contact us directly or search our website for an experienced sales representative. If you’re thinking of purchasing a house or condo, make sure you visit Performance Realty’s Guide to Buying a Home.